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October 31, 2016

What Happens to Your Credit Card Debt After You Die?

"When examining a loved one's credit cards, it's crucial to know whose
names were associated with the account. If there was only one name on
the credit card account – that of the deceased – the debt may belong
only to that person," according to Matt Schulz writing for USNWR. "When you die, your estate – all of the money
and property you owned – typically pays off the balance. If there's not
enough money in your estate to pay your debts, your creditors may just
be out of luck. Your kids and your family typically can't inherit your
debts, and the banks can't make someone else pay them."
But things get complicated in community property states (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin. Couples in Alaska can opt-in) where assets and debts acquired during marriage are 'owned" equally by both spouses. Get the details at: money.usnews.com/money/blogs/my-money/articles/2016-10-24/what-happens-to-your-credit-card-debt-after-you-die